The time has come....

Spectacular rally in E$ exceeded my expectation by a touch to print high of 1.2977. Looking at the recent sessions (see chart with eclipse), one would have noticed that each sell-off is followed by a bullish engulfing candlestick pattern the very next day. Combining this occurrences with other technical signals, the probability of E$ breaking out and up has increased significantly. Note that a survey with traders revealed that many are still favouring to fade into rally just below 1.3000 with tight stops.

Europe order book:
Stop loss: 1.2890 and 1.3050/55
Limit: 1.2990/300

Primary trend: Bullish
Intermediate trend: Bullish
Minor trend: Bullish (Down/Up market with potential for breakout)

Technically, intraday indicator is in the o/b zone. Shorter intraday oscillator indicator is suggesting consolidation which at current level would mean more downside bias. However, the longer intraday momentum indicator is still pointing firmly higher. Taking all available intraday technical signals into consideration, the highest probability scenario would be a down first then up market. Expected range 1.2890/910 to 1.3050/70. Initial strong resistance at 1.3020/30 and strong support at 1.2830/40. Prefer to buy dips.

E$ Daily chart - Bull up for a breakout